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Brand Name Vs. Store Brand: Which is Cheaper? Generics Closing the Pricing Gap

After the budgeting/saving presentation my husband and I gave last Friday, one of the moms (and loyal 4our2cents reader) asked me a great question. “Don’t you think it is cheaper to buy generic than to use coupons on brand name?” My answer to her was, not always!

Often times you can get great sale + coupon match-ups that make brand name products the same price or even less than the store brand generic. Let’s look at Meijer for a great example. This week (2/12- 2/18) they are running an instant savings promotion on General Mills cereals, buy 4 boxes and instantly get $2 off your bill. That is like saving $0.50 per box. Use doubled coupons too and here is what you can get:

Select General Mills Cereal – $2.50
Buy 4 General Mills cereal, Get $2 off instantly
–Cheerios Dulce de Leche Cereal

$0.75/1 Cheerios Dulce de Leche Cereal printable or printable or printable
–Frosted Toast Crunch (12.3 oz.)
$0.75/1 Frosted Toast Crunch Cereal printable or printable or printable
–Cheerios MultiGrain Peanut Butter (11.3 oz.)
$1/1 Cheerios, Multi Grain Peanut Butter Cereal printable
$0.75/1 Cheerios, Multi Grain Peanut Butter Cereal printable
$1.10/1 Cheerios, Multi Grain Peanut Butter Cereal printable
*Search for more GM coupons
Final price= from $0.50 to $0.90 ea. wyb 4 after doubled coupon and instant savings!*
(See our Weekly Meijer match up for more GM cereal deals from $1-$1.50 per box)

I can’t imagine that you could find store brand for as low as $0.50 a box! Sure it takes a little more “work” to get this price, but I think it is worth it (my family goes through a box of cereal every 2 days!). And according to Time, soon it might be even harder to find rock bottom store brand pricing:

According to the Wall Street Journal, stores have raised the prices of private-label nonperishable food by 5.3%, compared to a 1.9% increase for goods made by national brands. Store-brand versions of perishable goods rose in price by 12%, compared to 8% for name brands. Although generics still cost an average of 29% less than name brands, stores are closing that gap quickly.

What are your thoughts on this question? I know some families actually prefer store brand (like Kristy’s hubby and Kroger yogurt). And obviously the store brands can be less expensive (remember those $1 Kroger brand saltines). I think this is an example of a “bargain hunting” misconception, and with a little knowledge, opinions on the topic might change.

Thanks for the inspiration Carrie!

3 comments

  1. lisa stafford says:

    Wonderful information Thank You…. But I do have a question as per the example it is a double coupon deal……. What about in areas that do not double coupons….. I live in Northern California land of no doubles.. lol Here I find that $1.50 per box of cereal is the best price. If you live in a non double coupon area are the generics better prices on some items?

    Thanks Keep up the great work :)
    Lisa

    1. Mary & Kristy says:

      Yes, Lisa the Meijer deal included doubles. We sure do feel bad for those of you who live in the land of no doubles. I still think $1.50 per box is a decent price. Again, I think it is almost on an item by item basis. In general I find brand name cereal truly is cheaper than store brand but for instance crackers are often cheaper to buy the store brand.
      Thanks for adding your “2cents” ;)

  2. Dee Wolters says:

    From a series of posts I did on brand name vs generic
    #2 Kitchen brand loyalty

    So with all the various brands of items how can we chose??? Is price is the best criteria to chose which brand to buy? I think that price is a good place to start but quality is the next consideration, and personal preference comes next. Which items are you willing to use a generic or store brand and which are you not?

    I suggest that staple items are all basically the same, so that is the first place to begin purchasing store brands. Staples would include:

    flour
    sugar
    salt
    pasta and rice
    canned vegetables including tomato products
    canned fruits, including applesauce
    oil, vinegar, salt, pepper
    oatmeal
    dried and canned beans
    cornmeal
    Another area to consider store brand is dairy. Most dairy items are basically the same, I mean the cow produces the milk, it is processed, skimmed and bottled. So try store brand milk, sour cream, yogurt, cream cheese, and cream.

    I think where the most difference comes is in the processed foods and there can be a lot of difference in store brand and name brand. But how much of a difference and is it worth the extra money? I love Cheetos! And I can tell the difference between the name brand and the real thing, but to save over $1/bag, I will take the store brand. And after eating it for a while I am used to it and don’t even notice it is not the real Cheetos. Cereal would fall into this category too. One of my children actually prefers store brand Cheetos and Corn flake cereal to the national brand.

    So, what items do you buy store brands and which do you not? Where have you noticed the biggest difference? And have you noticed a difference between different store brands?

    Next time: Review of Aldi store brands.

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